Business Setup in Ajman Mainland

Business Setup in Ajman Mainland

Business Setup in Ajman Mainland

Did you know that Ajman is the smallest of the seven emirates that make up the United Arab Emirates, yet it has a thriving business landscape that is attracting entrepreneurs from around the world? The Emirate of Ajman is experiencing a surge in business activity, with a recent report showing a 7% increase in tourism revenue in the first quarter of 2024. This growth isn’t limited to tourism – Ajman’s mainland is rapidly becoming a hub for entrepreneurs and established businesses alike.  Business setup in Ajman Mainland offers an incredible opportunity including strategic location, business-friendly environment, and competitive costs.  If you’re an entrepreneur and considering setting up your business in Ajman Mainland, we will explain essential information about the company formation process, licensing, benefits, and costs involved.  Why Choose Business Setup in Ajman Mainland?  There are several reasons why a business setup in Ajman Mainland a good choice for entrepreneurs might be. Here are some of the benefits and opportunities:  1. Cost-effective Compared to other emirates like Dubai, Ajman Mainland offers lower business setup costs, including renting office space and attracting foreign labour.  2. 100% Foreign Ownership In specific business activities, Ajman Mainland allows for full foreign ownership, meaning you won’t need a local Emirati partner to start your business.  3. Strategic Location Ajman is situated on the Arabian Gulf coast and provides excellent connectivity by air, sea, and land, making it a good spot for import/export businesses.  4. Supportive Government The Ajman Department of Economic Development (DED) is known for its streamlined processes and assistance for businesses. They offer guidance and support throughout the setup process.  5. Proximity to Free Zones Ajman Mainland is close to several Free Zones, which can be beneficial if your business needs a combination of mainland and free zone advantages.  6. Emerging Market Potential Ajman’s economy is rapidly growing, particularly in sectors like real estate, construction, and tourism. Setting up your business here positions you to tap into this exciting growth potential.  7. Tax Advantages There are zero corporate and personal income taxes in Ajman Mainland which makes it an attractive option for businesses looking to maximize their profits.  Types of Business Licenses Available in Ajman Mainland Ajman Mainland offers several business licenses catering to different business activities.  1. General Trading License The license is ideal for businesses involved in importing, exporting, and trading goods within the UAE. This license covers a broad range of products, but some specific categories may require additional approvals.  2. Industrial License This license is required for businesses engaged in manufacturing or industrial activities within Ajman Mainland. It allows for the production, storage, and distribution of manufactured goods.  3. Professional License This license is suitable for businesses offering professional services like consultancy, engineering, design, or legal services. The specific requirements for this license may vary depending on the chosen profession.  4. E-Commerce License  This license caters to businesses operating solely online to allow them to sell goods and services through e-commerce platforms. It streamlines the process for online businesses compared to a General Trading License.  Besides these common licenses, Ajman Mainland may offer more specialized licenses for specific sectors like tourism, education, or healthcare.  How to Setup a Business in Ajman Mainland? Setting up a business in Ajman Mainland as a foreign entrepreneur involves several steps. Here’s a general guide to help you through the process:  1. Choose a Business Activity  Research and identify the specific business activity you want to operate in Ajman. The Ajman Department of Economic Development (DED) has a website listing approved activities.  2. Decide on the Legal Structure Common options include:  Limited Liability Company (LLC): Popular choice with limited liability protection for shareholders.  Sole Establishment: Ideal for single owners with full responsibility for liabilities.  Branch of a Foreign Company: Suitable for establishing a branch of your existing foreign company.  3. Register Trade Name  Choose a trade name for your business and ensure it meets the naming criteria set by Ajman DED. Submit the trade name application to Ajman DED for approval. The name must be unique and not already in use.  4. Prepare Required Documents The documents required may vary depending on your chosen structure but typically include:  Passport copies of shareholders and directors  Business plan  Visa application forms (if applicable)  Lease agreement for your office space  5. Apply for a Business License Submit your application along with the required documents and fees to the Ajman DED. The DED will process your application and issue a trade license upon approval. Certain business activities might require additional approvals from relevant government departments. Our business consultant can advise on this step.  6. Secure a Physical Office Space Lease or purchase a commercial space in Ajman Mainland that meets your business needs. The DED may require a lease agreement as part of the application process.  7. Open a Corporate Bank Account Choose a bank in the UAE and open a corporate bank account. You’ll need your trade license, MOA, and other company documents for this process.  8. Visa Processing  Apply for visas for you, your employees, and any dependents. This involves obtaining an establishment card from the Ministry of Human Resources and Emiratisation (MOHRE) and applying for entry permits, medical tests, Emirates ID, and residency visas.  Setting up a business in Ajman Mainland involves a series of structured steps, from choosing the business activity to obtaining the necessary approvals and licenses. While the process may seem complex, working with a business setup consultant at Shuraa can simplify it and ensure compliance with all local regulations.  How Much Does It Cost to Start a Company in Ajman Mainland?  The Ajman mainland license cost generally starts around AED 12,000*. This is the core expense and depends on your chosen business activity and legal structure. However, the overall cost of business setup in Ajman Mainland can vary depending on several factors, including:  Business activity  License type  Visa fees  Office space  Location of your business  Government approvals  Bank account fees  Depending on your specific business activity, there may be additional
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